If you are a subscriber of the National Pension System (NPS), then this news is important for you. The Pension Fund Regulatory and Development Authority (PFRDA) said that NPS subscribers who want to exit and want to get the annuity payment on time. It will be mandatory for them to upload certain documents from April 1, 2023.
Let us tell you, this news has come at a time when the process of buying annuity has been simplified by the pension regulator in collaboration with IRDAI, in which Annuity Service Providers (ASP) will be able to use the NPS withdrawal form submitted by the subscribers at the time of annuity processing. It is necessary to use
In a circular dated February 22, 2023, the PFRDA said, “It shall be mandatory for the subscribers to upload the documents with effect from April 1, 2023 to avail the benefit of payment of annuity on time.”
These documents have to be submitted
As per the circular, the Subscriber and the concerned Nodal Officer, POP and Corporate shall ensure that the required four documents are uploaded on the respective CRA User Interface. Also, it has to be checked that whatever documents are uploaded, their print is clear. NPS Exit / Withdrawal Form ID and Address Proof Bank Account Proof Copy of PRAN Card
NPS process will accelerate
According to PFRDA, the common proposal for exit from NPS and purchase of annuity from Annuity Service Providers facilitates processing of lumpsum and annuity. This will also reduce the time taken by ASPs to issue annuity policies.
Under NPS rules, Annuity Service Providers are life insurance companies regulated by IRDAI and empaneled with PFRDA to provide services to NPS subscribers.